Understanding Average Balance Calculation

These topics provide an overview of the average balance calculation and discuss how to:

• Prepare your system for average daily balancing (ADB).

• Process average daily balances.

• Produce average daily balance reports.

This section lists prerequisites, common elements, and includes the following detail:

• Average daily balance setup.

• Summary of capabilities.

• Ledgers used by ADB.

• Average balance calculations.

• How ADB determines calculation method.

• Incremental calculations.

• Ad hoc calculations.

• Adjustments in ADB.

• Journal adjustments (998, 901, 902...) in ADB.

• Management and regulatory ADB reporting.

Note:

Adding ADB for a BU in the middle of a Fiscal Year is not retroactive.